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Clean Energy, A Strong Economy, and a Healthy Environment
William J. Keese Western Governors’ Association
June 1, 2007
European InsulationManufacturers
General Meeting
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Western Governors’ Association
Represents governors of 19 States and 3 U.S. Flag Pacific Islands
Address – Policy and governance issues in the Western U.S.
Focus - natural resources, the environment, human services, economic development, international relations and state governance.
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Energy Policy - Clean and DiversifiedDriven by the Environment Reduce Greenhouse Gas Emissions
Decrease reliance on fossil-fired generation through the use of energy efficiency and renewable resources
Balance new and traditional technologies to strengthen economic growth, stabilize energy prices, maximize reliability, and mitigate environmental impacts
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Clean and Diversified Policies The CDEAC Report
Bring 30,000 MW of new clean energy online by 2015
Increase energy efficiency 20% by 2020 Meet transmission needs over the next
25 years
Western Governors sought technically and financially viable incentive-based recommendations to:
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Potential Generation Capabilities in the Western U.S. - 2015
Biomass 10,000 MW
Geothermal5,600 MW
Advanced Coal5,000 MW
Solar 8,000 MW
5,000 – 54,000 MW
48,000 MW
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Clean and Diversified Energy -Energy Efficiency is First Easiest, cheapest and least
controversial strategy
No need to wait for “untested” and expensive technologies
Successful implementation of energy efficiency requires some governmental intervention National and regional energy efficiency
standards and building standards Tax credits for energy efficiency
investments
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Clean and Diversified Energy -Renewable Energy is Next Renewable energy sources can
compete with other energy sources
Short-term financial support needed Need to extend production and
investment tax credits Increase cap on residential investment
tax credit Clean Renewable Energy Bonds for
public power and cooperatives Development of adequate
transmission is a must
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United States Geothermal Resources
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Clean and Diversified Energy -Fossil Fuels Are Still Important Natural gas is a “clean” energy
option but other fossil alternatives must be pursued
Coal must be a part of a clean energy future
WGA supports development of zero-emission technologies
R&D critical to realizing clean energy goals
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Moving into Implementation - CDEi Governors called for implementation of the
CDEAC’s recommendations Formation of a D.C. strategy group to push for
adoption of federal recommendations Creation of partnerships and formal coalitions Western Renewable Energy Generation Information
System (WREGIS) development
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States are Leading the Way
23 states and the District of Columbia have Renewable Portfolio Standards Arizona: 15% by 2015 California: 20% by 2010, with 3000 MW Solar goal New Mexico: Targeting 15% by 2015, 20% by 2020 Washington: 15% by 2020
National standard being debated in Congress
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States are Leading the Way
West Coast Governors Global Warming Initiative 15% savings: Residential buildings by 2015
California Green Building Initiative 20% savings: Non-residential standards by 2015
Seven Western States State buildings built to LEED Silver standards
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Energy Action PlanCalifornia’s Loading Order
First resource of choice: allcost-effective energy efficiency
and demand response.
After all energy efficiency and demand response is deployed,
utilize renewables and distributed generation
If energy efficiency, demand response, renewables, and distributed generation
cannot satisfy increasing needs,California can turn to clean and efficient
fossil-fired generation.
The Loading Order is integrated into all major CPUC decisions governing energy policy and procurement.
Enacted in 2003
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Energy Savings from California Efficiency Programs and Standards
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
19
75
19
80
19
85
19
90
19
95
20
00
GW
h/y
ear
~15% of California Annual Energy Use: 2003
Utility Efficiency Programs
at cost of
~1% of electric bill
Building Standards
Appliance Standards
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California IOU’s Investment in Energy Efficiency
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,00019
76
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Mill
ions
of $
2002
per
Yea
r
Forecast
Profits decoupled from sales
Performance Incentives
Market Restructuring
Crisis
IRP2% of 2004
IOU Electric Revenues
Public Goods Charge
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Additional Information
To learn more about the WGA and these Initiatives, please visit
www.westgov.org
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